Plan To Retire Early
Plan Now to Retire Earlier
Guest Post By Aurora McCausland
Retirement is a far-off venture that we longingly think of when we’re sitting in our cubicle on a Wednesday afternoon, feeling uninspired. To finally be able to relax, to have nowhere you have to be, and to have no one else calling the shots for you. You’ll be your own boss, but the only things you’ll be doing are traveling, exploring new hobbies you never had the time to do before, and spending more time with your family. But retirement is so far off. Waiting to be 65, and finally be able to take a break, and enjoy the remaining years of your life, might almost feel like a pipe dream. But why does it have to be? The traditional recommended age to retire is 65, yes. But that doesn’t mean you can’t speed things up. After all, who wouldn’t love to retire 20 years early?
Constantly learn new things
No, we’re not saying go back to school, not necessarily. If that’s what you feel is in your best interest, you are more than welcome to do so. But by learning new things on a consistent basis, you’re able to diversify yourself and your skillset. Not only does this open you up to new job opportunities that will potentially earn you more money, but you’ll be able to learn the skills necessary to go into business for yourself. If you grow a successful business, in 10+ years you could hire out a CEO to run the company, and retire early to do what you please, simply owning the company and putting in minimal effort. That route isn’t for everyone, but you should constantly continue to learn new things. Vocational and trade schools are excellent options, but there are also online courses and classes that you can take to expand your existing knowledge. The more you know, the greater your earning potential is.
Learn how to save more on your taxes
No one likes tax season. It’s a necessary evil, but not something we enjoy doing. What you probably don’t know, though, is that there are lots of ways that you could be saving money that you really aren’t. There are so many things, hidden inside the menial task of filing your taxes, that could be saving you plenty of money. One of the most often overlooked tax deductions is home related tax deductions. You can write off the amount of money you spent on interest for your various home loans, property taxes, and any space within your home that you use as a home office. It’s all tax deductible. Save as much as possible on your taxes, and then transfer that money straight into your retirement savings account. That few thousand dollars every year will really start to add up.
Find a side hustle that you love
A lot of people have a side job or side business, something they like to call their “side hustle”. Make sure that it’s something that you love, that also has the ability to make you money. Even if it’s a small amount of money. It’s healthy to have something that you spend time on every week that makes you feel passionate. Pursue your passions! Find something you love, and you’ll be able to find a way to monetize it. This extra income is a great way to help you save money for an early retirement.
Renting vs owning a home
There is a great debate between whether it’s more financially responsible to own or rent property. This is a debate that will probably never be officially resolved. But if you want to look at it strictly from the perspective of how much money is being spent, as long as the payments are relatively close in price, renting is a more financially responsible option. Owning a home can be expensive. If something breaks, you’re the one footing the bill. No one else is going to help you pay for it. The upkeep for a rental unit is practically non-existent. If something breaks, you call your landlord, and they handle it. The benefit here is just that it’s easier to keep your unexpected expenses low. If you own a home now, consider renting after you retire. This way, you know how much you’ll be spending every month on home costs, no surprises.